Blessings in a Troubled Year

In Western Pennsylvania, this summer has been one of the most perfect summers I can remember. At times it was very hot and humid, but for me, I enjoy this type of weather. Under the current pandemic and social distancing restrictions put in place, the weather we experienced was “just what the doctor ordered!” Many businesses have flourished under this environment such as the sales of recreational vehicles and bicycles. The golf industry is also experiencing a spike in the sale of equipment, increased rounds played in addition to more interest by families and individuals seeking private club memberships. Membership at Seven Oaks Country Club, a private club owned by the GCU Holding Company, has experienced a 63% increase in membership thus far over 2019. If anything positive can be linked to this pandemic it is that we are getting out of the house to enjoy more of outdoors and what nature has to offer. Over the next several weeks the summer landscape will transform itself into one of the most spectacular phenomena of nature presenting a most colorful picturesque portrait as nature prepares for its winter slumber. I do hope you have an opportunity to enjoy “God’s Country” during this fall season!

Despite the current COVID-19 pandemic environment, it has been “business as usual” for the GCU. As the safety of our employees is first and foremost, many of our employees are continuing to work remotely as requested by the Governor of the Commonwealth of Pennsylvania, Tom Wolf. We express our gratitude to our entire Staff in continuing to provide exceptional service to our members and agents.

The pandemic has certainly negatively affected all businesses. GCU is very fortunate to tout a strong distribution force that promotes our life and annuity business and believes in our mission as a fraternal benefit society. We thank each of our agents for introducing GCU and our product lines to your clients.

Our annuity sales are 85% of goal (cash with application) with our overall total annuity premium received in 2020 at 89% of goal. In comparing total annuity premium year to date through September, we are behind 2019’s total premium by $ 1.5 million or .0085% (Less than 1%).
Our life sales are 48% of goal (first year commissionable premium) with our overall total life premium received in 2020 at 47% of goal. In comparing total life premium year to date through September, we are ahead of 2019’s total premium by $ 1.4 million. The primary reason for falling short of our first-year commissionable premium goal, in addition to the pandemic challenges, is due to the delay in fully launching our newly developed final expense product. We are currently testing live with eight agents and working out all the “kinks” to achieve a flawless process for instantaneous decisions on applications submitted. The full launch of this product is scheduled for October 12th. Once launched, we will experience increased premium in the fourth quarter and into the future.

The GCU continues to experience growth in assets and surplus while continuing to experience excellent net profit before refunds and realized gains and losses. As previously reported the energy sector continues to be challenged as realized losses were recorded in our second quarter financial statement. The GCU’s second quarter financial statements are presented on page 4 in the October Magazine. Our Chief Financial Officer, Tim Demetres, presents a detailed commentary on our 2020 second quarter results including the issues we are experiencing with investments within the energy sector.

We reside in the greatest country in the world. We enjoy the freedoms to live life as we please and take advantage of the various opportunities that allow us to strive to make our dreams a reality in creating the best possible lives for each of us and our families. These freedoms were the dreams of our ancestors who first arrived on the shores of America when they fled their homelands in search of independence and a better way of life. The Founding Fathers laid the foundation of our government through the Constitution of the United States and the Bill of Rights that established our country as a republic in which the supreme power is held by the people represented through elected officials. It is essential for each American to vet each and every candidate that serves our interests whether on a federal state or local level. It is our civic duty to vote as this is one of the most important rights we have under our form of government. It is especially important to vote during a Presidential election year. The President is our leader that sets the tone within our government and establishes a plan and vision in working with our Congressional elected officials to address the needs of all Americans and the many issues currently facing our nation. So, no matter what your party affiliation may be, it is important to analyze each of the two candidates running for President this election year, scrutinizing their character and ability to lead our great nation over the next four years. Please exercise you right to vote!

The year 2020 was also an election year for the GCU’s Spiritual Advisor and Board of Directors. As was previously reported, for the first time in the history of the GCU all adult benefit members had the privilege to vote for candidates that will lead our Society over the next four years. We thank all of the members that exercised their right to vote under the amended Bylaws of the GCU. We once again congratulate each of the ten incumbent Directors on their re-election. The newly elected Board of Directors is presented to you on page 2 of the October Maqgazine. We welcome to the Board Rt. Reverend John Kachuba as our newly elected Spiritual Advisor. Father John is no stranger to the governance process of the GCU as he served as Chairman of the Supreme Tribunal and as Chairman of the Credential Committee for many of the GCU’s Conventions. Again, welcome Father John!

Our fraternal programming for 2020 has had limited activity. We thank each of our lodges and districts that have been able to conduct events within the social distancing guidelines of the Center for Disease Control (CDC) and state and local mandates. We invite you to participate in the GCU’s GoGIVE! Direct and Special COVID-19 GoGive programs that can be done from the comfort of your home. Both programs were designed as Matching Fund Programs to enhance monetary charitable contributions made by individual GCU members. More information on these two programs are available on the GCU website - www.GCUusa.com.

As our western states are experiencing devastating forest fires and our southern gulf and Atlantic seaboard states are dealing with severe damage created by hurricanes, we have once again activated a special matching funds program to financially support the efforts of Catholic Charities, the American Red Cross and the Salvation Army to supply various life sustaining needs to individuals and families affected by these natural disasters. Total donations of $3,600 was collected by the GCU Foundation in support of this effort as this total will be matched by the GCU resulting in a total of $7,200 that will be split amongst the three organizations. We thank all that have contributed to this cause.

In closing, my continued well wishes to you and to your loved ones that you continue to remain safe during this pandemic. Please take the time and enjoy the fall season that God has created for us to enjoy. Also, do your part in combating this virus by abiding by the guidelines established that will assist in limiting its spread. We must continue to pray and call upon our Lord and Savior and St. Nicholas, the patron saint of the GCU, to continue to inspire and provide the wisdom to the many individuals striving to develop a vaccine to combat this deadly disease.
GOODNESS IS GREAT!
George N. Juba